Despite a challenging climate and looming tax threats, the UK’s rich are more optimistic than their European peers that their wealth will grow over the next five years, a new survey has revealed.
Conducted by Quintet Private Bank and BlackRock, The Rise of Generational Wealth: 2024 European Wealth Insights found 78 per cent of European HNWs expected their wealth to grow by the end of the decade, thanks to well-performing portfolios and strong wealth management, with the UK’s wealthy displaying greater confidence than their counterparts in Belgium, Germany, and the Netherlands.
Britain’s rich were also more likely to attribute their wealth to personal hard work and dedication rather than luck.
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Across the countries surveyed, multigenerational HNWs were particularly optimistic, believing their accumulated experience and existing structures would support future growth.
But the report, which sheds light on the financial mindsets and strategies of HNWs across Belgium, Germany, the Netherlands, and the UK, showed a gender split, with female respondents nearly twice as likely as male respondents to predict a decrease in their wealth over the next five years.
As HNWs prepare to transfer wealth across generations, the report found that while Europe’s wealthy were looking to the future with a mix of confidence and caution, many were putting off retirement and drawing up full succession plans.
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One-third have yet to start any retirement planning. For those who have started, only half have a full retirement plan in place. Within this group, multigenerational HNWs — those with inherited wealth—are more likely to have made at least some preparations compared to first-generation.
When it comes to passing down wealth, a full plan is still rare. Although 80 per cent of Europe’s rich intend to transfer their wealth to their children, just 34 per cent have a comprehensive plan in place for doing so. This rate varies slightly by country, with Germany leading at 39 per cent and the Netherlands at the lower end with 29 per cent.
Wealth conversations start early—especially for the next HNW generation
Surveyed HNWs were also asked when they consider it appropriate to discuss wealth with their heirs. The consensus? Age 24. In the UK, that age drops slightly to 22. Among families who have already begun these discussions, the average age, at 21, was even younger. Multigenerational HNWs tend to initiate these conversations earlier, preparing their children for wealth stewardship sooner than first-generation.
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Shifting investment strategies: Growth vs. preservation
Investment preferences among Europe’s rich vary notably based on their financial goals. Those focused on growing wealth over the next five years are predominantly invested in equities and real estate, with 43 per cent also investing in private businesses to drive growth. By contrast, HNWs aiming to preserve wealth showed less interest in such high-growth assets, with just 17 per cent invested in private businesses.
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A significant share of growth-focused investors is diversifying into alternatives—30 per cent hold alternative investments, 25 per cent are in currencies, and 24 per cent in commodities. This trend underscores a growing appetite among the wealthy for asset classes that provide unique return opportunities, a shift driven by both economic conditions and personal wealth goals.
Chris Allen, CEO of Quintet Group, said their findings were essential for guiding the transfer of generational wealth. ‘Amidst the greatest transfer of private wealth in history, we believe that understanding generational drivers and differences is more crucial than ever for organisations that help individuals and families to protect, grow and pass down wealth,’ he said.
Ivan Pascual, Head of EMEA Wealth Client Business at BlackRock, echoed this sentiment: ‘The survey findings reinforce the importance of having comprehensive financial plans in place, as well as a well-structured investment portfolio. For many, this includes alternative investments, which play a valuable role in enhancing returns and providing access to unique opportunities.’
